7. OPERATING LEASES

The Company leases machinery, equipment, vehicles, buildings and office space throughout its locations that are classified as operating leases. Remaining terms on these leases range from less than one year to eight years. For the years ended January 3, 2026, December 28, 2024 and December 30, 2023, operating lease costs totaled $8.1, $7.5 and $7.0, respectively.

Supplemental balance sheet information related to operating leases is as follows:

 

 

 

January 3, 2026

 

 

December 28, 2024

 

Right-of-use assets

 

$

17.6

 

 

$

22.9

 

Lease liabilities:

 

 

 

 

 

 

Current lease liabilities

 

$

3.8

 

 

$

4.4

 

Non-current lease liabilities

 

 

15.3

 

 

 

20.3

 

Total lease liabilities

 

$

19.1

 

 

$

24.7

 

 

 

 

 

 

 

Weighted average remaining lease term (in years):

 

 

3.4

 

 

 

 

Weighted average discount rate:

 

 

4.4

%

 

 

 

Supplemental cash flow information related to leases is as follows:

 

 

 

For the Year Ended

 

 

 

January 3, 2026

 

 

December 28, 2024

 

Cash paid for amounts included in the measurement of lease liabilities:

 

 

 

 

 

 

Operating cash flows from operating leases

 

$

8.2

 

 

$

7.9

 

Non-cash impact of new leases and lease modifications

 

$

4.4

 

 

$

1.8

 

 

Maturities of lease liabilities are as follows:

 

2026

 

$

6.8

 

2027

 

 

3.8

 

2028

 

 

3.4

 

2029

 

 

3.3

 

2030

 

 

3.1

 

Thereafter

 

 

4.7

 

Total lease payments

 

 

25.1

 

Less: Imputed interest

 

 

(6.0

)

Total lease obligations

 

 

19.1

 

Less: Current lease liabilities

 

 

(3.8

)

Non-current lease liabilities

 

$

15.3

 

 

Historical Timeline

Fiscal YearFiled
2026Mar 3, 2026Showing above
2024Feb 25, 2025
2023Feb 27, 2024
2022Feb 28, 2023
2021Mar 2, 2021
2019Feb 25, 2020

About Leases Disclosures

Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.

Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.